• Debt Management Plan

    • Lower repayment with Debt Management Plan Single lower monthly repayment
    • A chance to freeze interest A chance to freeze interest
    • We deal with all your creditors We deal with all your creditors
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  • Debt Management Plan

    If repayments are getting on top of you it might be worth considering a Debt Management Plan (DMP), under which you make one affordable payment each month which is distributed among your creditors.


    ClearStart does not charge fees for setting up or administering a Debt Management Plan.

    How much you could save with ClearStart

      ClearStart Clark
    Richards
    DebtPlan
    Direct
    Clear
    Debt Ltd
    Setup Fees No Fees 2 months
    payment
    2 months
    payment
    1
    months
    payment
    Monthly Fees 0% 14.9% 15.0% 17.6%
    Annual Review Fees £0.00 £0.00 £0.00 £0.00
    Total Annual
    Cost
    No Fees 2 months fees + 14.9% monthly fees 2 months fees + 15.0% monthly fees 1 months fees + 90% 2nd Month fees + 17.6% monthly fees
             


    (Figures correct as of 1 August 2012)


    We negotiate with your creditors to fund our costs which means that all the money you pay goes directly towards paying off your debts. We also attempt to get interest and other charges frozen, although this cannot be guaranteed. Additionally, we don’t charge any fees even if a creditor does not agree to fund our services.


    This will normally ease the pressure of creditors chasing the debts, giving you a chance to organise a budget and plan ahead financially. Your total debts typically need to be between £3,000 and £10,000 to qualify.

    How does a Debt Management Plan work?

    A DMP gives you some breathing space to get the management of your finances under control and reduces some of the worry because we deal with your creditors. Your repayments will typically be lower and over a longer period, enabling you to manage your debt more effectively.


    ClearStart’s specialist advisors will work with you every step of the way to ensure the best possible result with your Debt Management Plan. When you call us, we will assess your situation to see if a Debt Management Plan is right for you and then send you our information pack which includes documents such as a letter of authority allowing us to deal with your creditors. You can begin making your monthly payments at this stage.


    Once we receive the documents and first payment, we can then begin setting up your plan. We will contact all your creditors to tell them you have entered into a Debt Management Plan and that we are working on your behalf. When we receive confirmation of all your outstanding balances we make an offer of repayment and try to have interest & charges frozen, although this cannot be guaranteed.


    We will be there for you at every stage and our client liaison teams are always on hand to help if you have any concerns or questions.

    Advantages of a Debt Management Plan

    As with all debt solutions a DMP has both advantages and disadvantages. On the plus side:

    • You will have just one affordable monthly payment.
    • It may also be possible to freeze interest and charges.
    • You will keep your home if you stick to the plan.
    • We will deal with your creditors for you.
    • The plan is confidential and no one else needs to know.

    Disadvantages of Debt Management Plan

    There are drawbacks too and it is important to be aware of them:

    • A DMP is not legally binding.
    • You can still be contacted by creditors.
    • The debt is not written off, and if interest builds up it can get worse.
    • It may take a long time to complete the plan.
    • A DMP will have a negative effect on your credit rating.

    Do I qualify for a Debt Management Program?

    A Debt Management Plan is typically suitable for people who owe between £3,000 and £10,000 in unsecured debts. You must be a UK resident and have enough disposable income to afford a single monthly repayment. ClearStart offers Debt Management Programs without any fees but please note that fees are chargeable for other debt solutions such as an Individual Voluntary Arrangement (IVA).


    For confidential, no-obligation advice on the right debt solution for you contact one of ClearStart’s advisers. The call is free from landlines but not mobile phones. If you are calling from a mobile please let us know and we will call you back. It could be your first step towards managing your debts and taking back control of your finances.

    No Fees Charged for Debt Management Plans

    As oppose to other debt management companies who charge initial setup fees, monthly fees and annual review fees, ClearStart provides Debt Management Plans without any fees meaning no debt management setup fee, no monthly fees, no annual review fees and no hidden charges.

    How does ClearStart offer a no fee Debt Management Plan?

    ClearStart does not charge any fees for setting up or administering a debt management plan (DMP). We negotiate with your creditors to fund our costs meaning that all the money you pay goes directly towards paying off your debts. We also attempt to get interest and other charges frozen, although this cannot be guaranteed.


    Additionally, we don’t charge any fees even if a creditor does not agree to fund our services.


    We regularly deal with most of the top lenders which enable us to negotiate the best possible outcomes for our clients. Our aim is to help you get your finances under control with affordable payments, either monthly or weekly, that are made on a schedule that suits you, for example just after pay day.

    Debt Management Plans – Frequently Asked Questions

    How long does a debt management plan last?
    This depends on how much you owe, how much you can repay and what your creditors will agree to. There are no firm answers and things can change – ClearStart will work with you to try and ensure the best possible outcome.

    What debts can be included in Debt Management Plan?
    A Debt Management Plan includes all unsecured loans such as credit cards, personal loans, store cards, utility bills, and catalogue debts. Pay day loans can be included in Debt Management Plan but no secured debts like mortgage or a hire purchase car loan can be included.


    How does ClearStart offer no fee Debt Management Plans?
    ClearStart does not charge any fees for setting up or administering a debt management plan (DMP). We negotiate with your creditors to fund our costs meaning that all the money you pay goes directly towards paying off your debts. We also attempt to get interest and other charges frozen, although this cannot be guaranteed.


    What if I change my mind?
    You are under no obligation to proceed with any of the solutions we advise on. Should you change your mind once a plan has been put into place, you are provided with a cooling off period of 14 days under the Consumer Protection (Distance Selling) Regulations 2000.
    Please see our Debt Management Terms of Business (PDF) for full details on your right to cancel.


    Why set up a Debt Management Program through ClearStart?
    ClearStart have the right contacts with the lending agencies and can negotiate for better terms on your behalf. They can negotiate for lower and affordable monthly installments to be made over an extended period of time.

    ClearStart have the right skills, legal and technical knowledge to ensure that you get a fair deal and that your interest is not compromised.



    Who is eligible for debt management programs
    Anyone is eligible, but there are circumstances in which creditors would not agree to what would be needed to ensure a successful plan. It is essential to get independent advice on this.

    What happens when the Debt Management Plan finishes?
    It may be that you can repay enough over time to reach a final settlement with your creditors so that they are no longer pursuing you for any money. You need to be aware of the damage to your credit rating that many missed or partial payments will have caused, so you will find it harder to get credit in future.

    Why can’t I just get a new loan?
    There is no one-size-fits-all answer to this question and ClearStart can help you assess your own circumstances. In fact, we will always show you all sensible options when we talk about your circumstances and a consolidation loan can sometimes be helpful as an alternative to debt management programs. Our debt management test form will help show you the alternatives.

    Will it affect my credit rating?

    Yes, your credit rating will be affected. Credit reference agencies such as Experian, Equifax and Call Credit maintain records of your credit accounts. Failure to maintain contractual payments towards any debts will result in a default notice being made on your credit file. These notices will remain on your credit file for 6 years (unless the creditor agrees to remove them prior to this) and may affect your ability to obtain credit.


    Am I bound to accept the solutions offered?

    No. You can seek further advice to understand the various debt solutions available to help you deal with your debt. However, if you are not satisfied, you don’t have to accept the plan offered and can seek out other debt service providers.


    Clear Difference
  • Customer Reviews
    Debt Management Plan Debt Management Plan SKU UPC Model

    My finances are now sorted and I can only spend what I have and I watch every penny. I have peace of mind that my finances are being managed by professionals and I feel a lot happier. The service is excellent, goodness knows where I would be now if I didn't get the help I needed. 


    My finances are now sorted and I can only spend what I have and I watch every penny. I have peace of mind that my finances are being managed by profes

    Miss Julie Hart
    Jun 02, 2012 

    I was worried about interest charges and not being able to make the minimum payments on my debts. After being in the plan for only six months I am now feeling brilliant and can see the light at the end of the tunnel. I have found the service I have received excellent. 


    I was worried about interest charges and not being able to make the minimum payments on my debts. After being in the plan for only six months I am now

    Mrs Joanne
    Apr 26, 2012 

    I still felt anxious even when the DMP was accepted, however starting the second year I am feeling more relieved that we have managed to progress. All credit cards have now gone and I am much more cautious with my spending. I am feeling greater relief month by month. 


    I still felt anxious even when the DMP was accepted, however starting the second year I am feeling more relieved that we have managed to progress. All

    Mr J Edwards
    Feb 12, 2012 

    5.0 5.0 3 3 My finances are now sorted and I can only spend what I have and I watch every penny. I have peace of mind that my finances are being managed by professionals and I feel a lot happi Debt Management Plan
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  • DMP Protocol Approved
    Debt Management Plan Protocol Approved

    The first provider of free Debt Management Plans to be Protocol approved.
    You can be assured of a high standard of service that is fully compliant.


    To find out more about managing your debt and receiving free debt advice visit Money Advice Service or to get more information about how to deal with creditors if you are struggling with debt, please read our Insolvency Service Guide.


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